Allied World Reports $86.2 Million Operating Income in Third Quarter 2011; Quarterly Gross Premiums Up 17% Driven By Targeted Lines
By Allied World Assurance Company Holdings Ag, PRNEWednesday, November 2, 2011
ZUG, Switzerland, November 3, 2011 -
Allied World Assurance Company Holdings, AG (NYSE: AWH) today reported operating income of $86.2 million, or $2.19 per diluted share, for the third quarter of 2011 compared to operating income of $143.6 million, or $2.94 per diluted share, for the third quarter of 2010. Operating income for the nine months ended September 30, 2011 was $89.0 million, or $2.24 per diluted share, compared to operating income of $300.5 million, or $5.79 per diluted share, for the first nine months of 2010.
President and Chief Executive Officer Scott Carmilani commented, “Allied World is pleased to report strong operating returns in the third quarter of 2011. Despite the catastrophe activity in the quarter, the company was able to generate operating income of $2.19 per diluted share which equates to 11.5% operating return on equity on an annualized basis.
Also noteworthy is the favorable premium growth experienced in each of our operating segments during the quarter. This growth was led by our international reinsurance business written out of our Lloyd’s platform where we are participating in the rate increases experienced in the territories impacted by global catastrophe activity over the last two years. On the insurance side, we continue to gain more traction in the new specialty classes that we are targeting in both our U.S. and international insurance platforms.”
The company reported a net loss of $11.0 million, or $0.29 per diluted share, for the third quarter of 2011 compared to net income of $254.5 million, or $5.21 per diluted share, for the third quarter of 2010. Net income for the nine months ended September 30, 2011 was $91.4 million, or $2.30 per diluted share, compared to net income of $572.2 million, or $11.03 per diluted share, for the first nine months of 2010.
Mr. Carmilani continued, “When including mark-to-market losses on investments, we are reporting a net loss for the quarter driven by market losses taken against our trading investment portfolio. Despite these losses for the quarter, our investment returns have continued to outperform many of our peers and our benchmarks over the last several years and we continue to actively manage our portfolio with a bias towards a shorter duration and diversification into non-fixed income asset classes.”
Mr. Carmilani concluded, “Growing diluted book value per share by 2.1% year to date despite the catastrophe activity and the volatility in the equity markets is a strong accomplishment for our company. Given the current valuation of our stock price, we are pleased to announce the resumption of our share repurchase program which has $201 million of remaining capacity.”
Underwriting Results
Gross premiums written were $442.7 million in the third quarter of 2011, a 17.0% increase compared to $378.5 million in the third quarter of 2010. For the nine months ended September 30, 2011, gross premiums written totaled $1,523.0 million, a 10.6% increase compared to $1,376.5 million in the first nine months of 2010.
Net premiums written were $350.3 million in the third quarter of 2011, a 15.9% increase compared to $302.2 million in the third quarter of 2010. For the nine months ended September 30, 2011, net premiums written totaled $1,226.9 million, an 11.0% increase compared to $1,105.3 million in the first nine months of 2010.
The combined ratio was 83.9% in the third quarter of 2011 compared to 70.3% in the third quarter of 2010. The loss and loss expense ratio was 55.4% in the third quarter of 2011 compared to 37.4% in the third quarter of 2010. During the third quarter of 2011, the company recorded net favorable reserve development on prior loss years of $61.5 million. This favorable reserve development resulted in a benefit of 16.6 percentage points to the company’s loss and loss expense ratio for the quarter. This compares to the third quarter of 2010, where the company recorded net favorable reserve development on prior loss years of $101.4 million, a benefit of 29.9 percentage points to the company’s loss and loss expense ratio for that quarter. Absent these adjustments, the loss and loss expense ratio for the third quarter of 2011 was 72.0% compared to 67.3% for the third quarter of 2010. The third quarter 2011 loss and loss expense ratio was impacted by $33.5 million of net losses, or 9.0 percentage points, from Hurricane Irene during the quarter and additional losses developing from catastrophes occurring in the first half of 2011. These catastrophe losses were comprised of $3.5 million from our U.S. insurance segment, $10.5 million from our international insurance segment and $19.5 million from our reinsurance segment. The third quarter 2010 loss and loss expense ratio was impacted by losses of $25.0 million, or 7.4 percentage points, from major loss events during that quarter.
The company’s expense ratio was 28.5% for the third quarter of 2011 compared to 32.9% for the third quarter of 2010. The expense ratio was 30.4% for the nine months ended September 30, 2011 compared to 31.7% in the first nine months of 2010. The decreases in these ratios for the three and nine months ended September 30, 2011 were driven by increases in earned premiums and reductions in general and administrative expenses primarily due to a decrease in performance-based compensation expenses.
Investment Results
The total return on the company’s investment portfolio for the three and nine months ended September 30, 2011 was negative 1.1% and positive 1.1%, respectively. For the third quarter 2011, the company reported net realized investment losses of $130.8 million resulting from mark-to-market losses of $139.2 million and gains from the sale of securities of $8.4 million. See the table below for the components of our investment returns for the three and nine months ended September 30, 2011:
(expressed in thousands of THREE MONTHS ENDED NINE MONTHS ENDED
U.S. Dollars) SEPTEMBER 30, 2011 SEPTEMBER 30, 2011
Net investment income $ 47,883 $ 150,459
Net realized investment losses (130,809) (21,555)
Decrease in unrealized
investment gains (5,924) (42,389)
Net investment income, realized
gains and unrealized gains $ (88,850) $ 86,515
Average invested assets $ 8,048,140 $ 7,878,280
Financial statement portfolio
return -1.1% 1.1%
Note: net investment income, net realized gains/losses and change in
unrealized gains/losses are disclosed on a pre-tax basis.
Other Income
Other income for the three and nine months ended September 30, 2011 was $35.0 million. This represented a termination fee resulting from our previously announced merger agreement with Transatlantic Holdings, Inc., which was terminated on September 15, 2011. Given the non-recurring nature of this item, it has been excluded from the computation of the company’s operating returns.
Shareholders’ Equity
As of September 30, 2011, our total shareholders’ equity was $3.0 billion, compared to $3.1 billion as of December 31, 2010.
The company’s annualized net (loss) income return on average shareholders’ equity for the three and nine months ended September 30, 2011 was (1.5%) and 4.1%, respectively. The company’s annualized operating return on average shareholders’ equity for the three and nine months ended September 30, 2011 was 11.5% and 4.0%, respectively.
Share Repurchase Program
The company is announcing the resumption of its share repurchase program which was inactive in the second and third quarters of 2011 because of our merger agreement with Transatlantic Holdings, Inc., which was subsequently terminated. As of September 30, 2011, the company had $200.9 million of remaining capacity available under the share repurchase program.
As of September 30, 2011, diluted book value per share was $75.82, an increase of 2.1% compared to $74.29 as of December 31, 2010. For the first nine months of 2011, the company repurchased 969,163 of its common shares under its share repurchase program at an average repurchase price of $61.91 per share for an aggregate cost of $60.0 million.
Investment Supplement
Allied World will be providing additional information on its investment portfolio as of September 30, 2011. This information will be available at the “Investor Relations” section of the company’s website at www.awac.com.
Financial Supplement
A financial supplement relating to the third quarter of 2011 will be available at the “Investor Relations” section of the company’s website at www.awac.com.
Conference Call
Allied World will host a conference call on Friday, November 4, 2011 at 9:00 a.m. (Eastern Time) to discuss the third quarter 2011 financial results. The public may access a live webcast of the conference call at the “Investor Relations” section of the company’s website at www.awac.com. In addition, the conference call can be accessed by dialing +1-866-843-0890 (U.S. and Canada callers) or +1-412-317-9250 (international callers) and entering the passcode 0137127 approximately ten minutes prior to the call.
Following the conclusion of the presentation, a replay of the call will be available through Friday, November 18, 2011 by dialing +1-877-344-7529 (U.S. and Canada callers) or +1-412-317-0088 (international callers) and entering the passcode 10004958. In addition, the webcast will remain available online through Friday, November 18, 2011 at www.awac.com.
Non-GAAP Financial Measures
In presenting the company’s results, management has included and discussed in this press release certain non-generally accepted accounting principles (”non-GAAP”) financial measures within the meaning of Regulation G as promulgated by the U.S. Securities and Exchange Commission. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the company’s results of operations in a manner that allows for a more complete understanding of the underlying trends in the company’s business. However, these measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (”U.S. GAAP”).
“Operating income” is an internal performance measure used in the management of the company’s operations and represents after-tax operational results excluding, as applicable, net realized investment gains or losses, net impairment charges recognized in earnings, foreign exchange gain or loss and impairment of intangible assets, and any other non-recurring items. The company excludes net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss, and any other non-recurring items from the calculation of operating income because these amounts are heavily influenced by and fluctuate in part according to the availability of market opportunities and other factors. The company excludes impairment of intangible assets as these are non-recurring charges. In addition to presenting net income determined in accordance with U.S. GAAP, the company believes that showing operating income enables investors, analysts, rating agencies and other users of the company’s financial information to more easily analyze our results of operations and underlying business performance. Operating income should not be viewed as a substitute for U.S. GAAP net income.
The company has included “diluted book value per share” because it takes into account the effect of dilutive securities; therefore, the company believes it is an important measure of calculating shareholder returns.
“Annualized net income return on average shareholders’ equity” (”ROAE”) is calculated using average shareholders’ equity, excluding the average after tax unrealized gains (or losses) on investments. Unrealized gains (losses) on investments are primarily the result of interest rate and credit spread movements and the resultant impact on fixed income securities. Such gains (losses) are not related to management actions or operational performance, nor are they likely to be realized. Therefore, the company believes that excluding these unrealized gains (losses) provides a more consistent and useful measurement of operating performance, which supplements U.S. GAAP information. In calculating ROAE, the net income (loss) available to shareholders for the period is multiplied by the number of such periods in a calendar year in order to arrive at annualized net income (loss) available to shareholders. The company presents ROAE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.
“Annualized operating return on average shareholders’ equity” is calculated using operating income (as defined above and annualized in the manner described for net income (loss) available to shareholders under ROAE above), and average shareholders’ equity, excluding the average after tax unrealized gains (losses) on investments. Unrealized gains (losses) are excluded from equity for the reasons outlined in the annualized net income return on average shareholders’ equity explanation above.
Reconciliations of these financial measures to their most directly comparable U.S. GAAP measures are included in the attached tables.
About Allied World Assurance Company
Allied World Assurance Company Holdings, AG, through its subsidiaries, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions, offering superior client service through a global network of offices and branches. All of Allied World’s rated insurance and reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard & Poor’s, and A2 by Moody’s, and our Lloyd’s Syndicate 2232 is rated A+ by Standard & Poor’s and Fitch. Please visit www.awac.com for further information on Allied World.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this press release reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, our forward-looking statements could be affected by pricing and policy term trends; increased competition; the impact of acts of terrorism and acts of war; greater frequency or severity of unpredictable catastrophic events; negative rating agency actions; the adequacy of our loss reserves; the company or its subsidiaries becoming subject to significant income taxes in the United States or elsewhere; changes in regulations or tax laws; changes in the availability, cost or quality of reinsurance or retrocessional coverage; adverse general economic conditions; and judicial, legislative, political and other governmental developments, as well as management’s response to these factors, and other factors identified in our filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We are under no obligation (and expressly disclaim any such obligation) to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise.
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States dollars, except share and
per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
2011 2010 2011 2010
Revenues:
Gross premiums
written $ 442,698 $ 378,445 $ 1,522,984 $1,376,455
Premiums ceded (92,438) (76,276) (296,050) (271,199)
Net premiums
written 350,260 302,169 1,226,934 1,105,256
Change in
unearned
premiums 21,080 37,327 (165,411) (88,512)
Net premiums
earned 371,340 339,496 1,061,523 1,016,744
Net investment
income 47,883 59,479 150,459 193,975
Net realized
investment
(losses) gains (130,809) 116,930 (21,555) 289,350
Net impairment
charges recognized
in earnings - - - (168)
Other income 35,000 - 35,000 913
Total revenue 323,414 515,905 1,225,427 1,500,814
Expenses:
Net losses and
loss expenses 205,546 126,988 745,811 547,864
Acquisition
costs 39,680 41,919 120,733 120,641
General and
administrative
expenses 66,007 69,871 201,164 201,423
Amortization and
impairment of
intangible assets 767 892 2,300 2,675
Interest
expense 13,748 9,533 41,235 28,592
Foreign
exchange loss
(gain) 2,966 (1,387) 3,708 248
Total expenses 328,714 247,816 1,114,951 901,443
(Loss) Income
before income taxes (5,300) 268,089 110,476 599,371
Income tax
expense 5,672 13,569 19,028 27,152
NET (LOSS) INCOME $ (10,972) $ 254,520 $ 91,448 $ 572,219
PER SHARE DATA:
Basic (loss)
earnings per
share $ (0.29) $ 5.59 $ 2.40 $ 11.78
Diluted (loss)
earnings per
share $ (0.29) $ 5.21 $ 2.30 $ 11.03
Weighted
average common
shares
outstanding 38,110,368 45,544,060 38,078,116 48,580,541
Weighted
average common
shares and
common share
equivalents
outstanding 38,110,368 48,839,991 39,759,780 51,887,390
Dividends paid
per share $ 0.375 $ 0.20 $ 0.375 $ 0.60
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars, except share and per
share amounts)
As of As of
September 30, December 31,
ASSETS: 2011 2010
Fixed maturity investments available for
sale, at fair value (amortized cost:
2011: $264,050; 2010: $828,544) $ 284,966 $ 891,849
Fixed maturity investments trading, at
fair value 6,279,615 5,769,097
Equity securities trading, at fair value 424,104 174,976
Other invested assets trading, at fair
value 552,074 347,632
Total investments 7,540,759 7,183,554
Cash and cash equivalents 902,573 853,368
Insurance balances receivable 607,270 529,927
Prepaid reinsurance 218,514 187,287
Reinsurance recoverable 1,009,643 927,588
Accrued investment income 39,743 40,520
Net deferred acquisition costs 115,070 96,803
Goodwill 268,376 268,376
Intangible assets 54,576 56,876
Net deferred tax assets 26,872 19,740
Other assets 50,424 75,184
Total assets $ 10,833,820 $ 10,239,223
LIABILITIES:
Reserve for losses and loss expenses $ 5,245,553 $ 4,879,188
Unearned premiums 1,158,842 962,203
Reinsurance balances payable 95,463 99,732
Net balances payable on purchases and
sales of investments 405,124 318,570
Senior notes 797,885 797,700
Accounts payable and accrued liabilities 127,879 106,010
Total liabilities $ 7,830,746 $ 7,163,403
SHAREHOLDERS' EQUITY:
Common shares: 2011: par value CHF 14.38
per share and 2010: par value CHF 15.00
per share (2011: 40,003,642; 2010:
40,003,642 shares issued and 2011:
38,145,557; 2010: 38,089,226 shares
outstanding) 571,455 600,055
Additional paid-in capital 73,797 170,239
Treasury shares, at cost (2011:
1,858,085; 2010: 1,914,416) (112,624) (112,811)
Retained earnings 2,452,650 2,361,202
Accumulated other comprehensive income,
net of tax 17,796 57,135
Total shareholders' equity 3,003,074 3,075,820
Total liabilities and shareholders'
equity $ 10,833,820 $ 10,239,223
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT DATA
(Expressed in thousands of United States dollars, except for ratio
information)
Quarter Ended September U.S. International
30, 2011 Insurance Insurance Reinsurance Total
Gross premiums
written $ 201,522 $ 109,612 $ 131,564 $ 442,698
Net premiums written 157,310 61,386 131,564 350,260
Net premiums earned 150,474 80,175 140,691 371,340
Net losses and loss
expenses (85,720) (43,666) (76,160) (205,546)
Acquisition costs (19,549) 343 (20,474) (39,680)
General and
administrative
expenses (28,945) (21,558) (15,504) (66,007)
Underwriting income 16,260 15,294 28,553 60,107
Net investment income 47,883
Net realized
investment losses (130,809)
Other income -
termination fee 35,000
Amortization and
impairment of
intangible assets (767)
Interest expense (13,748)
Foreign exchange loss (2,966)
Loss before income
taxes $ (5,300)
GAAP Ratios:
Loss and loss expense
ratio 57.0% 54.5% 54.1% 55.4%
Acquisition cost
ratio 13.0% (0.4%) 14.6% 10.7%
General and
administrative
expense ratio 19.2% 26.9% 11.0% 17.8%
Combined ratio 89.2% 81.0% 79.7% 83.9%
Quarter Ended September U.S. International
30, 2010 Insurance Insurance Reinsurance Total
Gross premiums
written $ 181,232 $ 100,858 $ 96,355 $ 378,445
Net premiums written 140,481 65,520 96,168 302,169
Net premiums earned 129,650 80,557 129,289 339,496
Net losses and loss
expenses (55,144) (11,040) (60,804) (126,988)
Acquisition costs (18,081) 29 (23,867) (41,919)
General and
administrative
expenses (31,781) (22,819) (15,271) (69,871)
Underwriting income 24,644 46,727 29,347 100,718
Net investment income 59,479
Net realized
investment gains 116,930
Amortization and
impairment of
intangible assets (892)
Interest expense (9,533)
Foreign exchange gain 1,387
Income before income
taxes $ 268,089
GAAP Ratios:
Loss and loss expense
ratio 42.5% 13.7% 47.0% 37.4%
Acquisition cost
ratio 13.9% 0.0% 18.5% 12.3%
General and
administrative
expense ratio 24.5% 28.3% 11.8% 20.6%
Combined ratio 80.9% 42.0% 77.3% 70.3%
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED CONSOLIDATED SEGMENT DATA
(Expressed in thousands of United States dollars, except for ratio
information)
Nine Months Ended U.S. International
September 30, 2011 Insurance Insurance Reinsurance Total
Gross premiums
written $ 611,562 $ 399,530 $ 511,892 $ 1,522,984
Net premiums
written 470,099 245,281 511,554 1,226,934
Net premiums
earned 431,812 236,421 393,290 1,061,523
Net losses and
loss expenses (294,146) (186,932) (264,733) (745,811)
Acquisition costs (56,527) 2,946 (67,152) (120,733)
General and
administrative
expenses (90,997) (62,939) (47,228) (201,164)
Underwriting
(loss) income (9,858) (10,504) 14,177 (6,185)
Net investment
income 150,459
Net realized
investment losses (21,555)
Other income -
termination fee 35,000
Amortization and
impairment of
intangible assets (2,300)
Interest expense (41,235)
Foreign exchange
loss (3,708)
Income before
income taxes $ 110,476
GAAP Ratios:
Loss and loss
expense ratio 68.1% 79.1% 67.3% 70.3%
Acquisition cost
ratio 13.1% (1.2%) 17.1% 11.4%
General and
administrative
expense ratio 21.1% 26.6% 12.0% 19.0%
Combined ratio 102.3% 104.5% 96.4% 100.7%
Nine Months Ended U.S. International
September 30, 2010 Insurance Insurance Reinsurance Total
Gross premiums
written $ 532,980 $ 389,881 $ 453,594 $ 1,376,455
Net premiums
written 407,274 245,110 452,872 1,105,256
Net premiums
earned 384,514 257,027 375,203 1,016,744
Other income 913 - - 913
Net losses and
loss expenses (222,767) (133,069) (192,028) (547,864)
Acquisition costs (50,895) 29 (69,775) (120,641)
General and
administrative
expenses (89,578) (67,321) (44,524) (201,423)
Underwriting
income 22,187 56,666 68,876 147,729
Net investment
income 193,975
Net realized
investment gains 289,350
Net impairment
charges recognized
in earnings (168)
Amortization and
impairment of
intangible assets (2,675)
Interest expense (28,592)
Foreign exchange
loss (248)
Income before
income taxes $ 599,371
GAAP Ratios:
Loss and loss
expense ratio 57.9% 51.8% 51.2% 53.9%
Acquisition cost
ratio 13.2% 0.0% 18.6% 11.9%
General and
administrative
expense ratio 23.3% 26.2% 11.9% 19.8%
Combined ratio 94.4% 78.0% 81.7% 85.6%
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED OPERATING INCOME RECONCILIATION
(Expressed in thousands of United States dollars, except share and
per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
2011 2010 2011 2010
Net (loss) income $ (10,972) $ 254,520 $ 91,448 $ 572,219
Add after tax affect
of:
Net realized
investment
losses (gains) 126,440 (109,581) 26,119 (272,033)
Net impairment
charges
recognized in
earnings - - - 109
Other Income -
termination fee (32,270) - (32,270) -
Foreign
exchange loss /
(gain) 2,966 (1,387) 3,708 248
Operating income $ 86,164 $ 143,552 $ 89,005 $ 300,543
Weighted average
common shares
outstanding:
Basic 38,110,368 45,544,060 38,078,116 48,580,541
Diluted 39,340,710 * 48,839,991 39,759,780 51,887,390
Basic per share data:
Net (loss) income $ (0.29) $ 5.59 $ 2.40 $ 11.78
Add after tax affect
of:
Net realized
investment
losses (gains) 3.32 (2.41) 0.69 (5.60)
Net impairment
charges
recognized in
earnings - - - -
Other Income -
termination fee (0.85) - (0.85) -
Foreign
exchange loss /
(gain) 0.08 (0.03) 0.10 0.01
Operating income $ 2.26 $ 3.15 $ 2.34 $ 6.19
Diluted per share
data
Net (loss) income $ (0.29) * $ 5.21 $ 2.30 $ 11.03
Add after tax affect
of:
Net realized
investment
losses (gains) 3.21 (2.24) 0.66 (5.24)
Net impairment
charges
recognized in
earnings - - - -
Other Income -
termination fee (0.82) - (0.81) -
Foreign
exchange loss /
(gain) 0.09 (0.03) 0.09 -
Operating income $ 2.19 $ 2.94 $ 2.24 $ 5.79
*Diluted weighted average common shares outstanding were only used
in the calculation of diluted operating income per share. There
were no common share equivalents included in calculating diluted
earnings per share as there was a net loss and any additional
shares would prove to be anti-dilutive.
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED DILUTED BOOK VALUE PER SHARE RECONCILIATION
(Expressed in thousands of United States dollars, except share and
per share amounts)
As of As of As of
September 30, December 31, September 30,
2011 2010 2010
Price per share at
period end $ 53.71 $ 59.44 $ 56.59
Total shareholders'
equity $ 3,003,074 $ 3,075,820 $ 3,341,314
Basic common shares
outstanding 38,145,557 38,089,226 42,394,576
Add: unvested restricted
share units 256,672 571,178 580,706
Add: Performance based
equity awards 898,014 1,440,017 1,409,984
Add: employee share
purchase plan 1,215 10,576 -
Add: dilutive
options/warrants
outstanding 1,107,305 3,272,739 4,563,380
Weighted average
exercise price per share $ 38.80 $ 35.98 $ 34.69
Deduct: options bought
back via treasury method (799,914) (1,980,884) (2,797,512)
Common shares and common
share
equivalents outstanding 39,608,849 41,402,852 46,151,134
Basic book value per
common share $ 78.73 $ 80.75 $ 78.81
Diluted book value per
common share $ 75.82 $ 74.29 $ 72.40
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS' EQUITY RECONCILIATION
(Expressed in thousands of United States dollars, except for
percentage information)
Quarter Ended Nine Months Ended
September 30, September 30,
2011 2010 2011 2010
Opening
shareholders'
equity $ 3,044,417 $ 3,468,543 $ 3,075,820 $ 3,213,295
Deduct:
accumulated other
comprehensive
income (23,095) (138,245) (57,135) (149,849)
Adjusted opening
shareholders'
equity 3,021,322 3,330,298 3,018,685 3,063,446
- -
Closing
shareholders'
equity $ 3,003,074 $ 3,341,314 $ 3,003,074 $ 3,341,314
Deduct:
accumulated other
comprehensive
income (17,796) (111,760) (17,796) (111,760)
Adjusted closing
shareholders'
equity 2,985,278 3,229,554 2,985,278 3,229,554
Average
shareholders'
equity $ 3,003,300 $ 3,279,926 $ 3,001,982 $ 3,146,500
Net (loss) income
available to
shareholders $ (10,972) $ 254,520 $ 91,448 $ 572,219
Annualized net
(loss) income
available to
shareholders (43,888) 1,018,080 121,931 762,959
Annualized return
on average
shareholders'
equity - net
(loss) income
available to
shareholders (1.5%) 31.0% 4.1% 24.2%
Operating income
available to
shareholders $ 86,164 $ 143,552 $ 89,005 $ 300,543
Annualized
operating income
available to
shareholders 344,656 574,208 118,673 400,724
Annualized return
on average
shareholders'
equity - operating
income available
to shareholders 11.5% 17.5% 4.0% 12.7%
Media: Faye Cook, Vice President, Marketing & Communications, +1-441-278-5406, faye.cook at awac.com, or Investors: Keith J. Lennox, Investor Relations Officer, +1-646-794-0750, keith.lennox at awac.com, www.awac.com
Tags: Allied World Assurance Company Holdings Ag, November 3, Switzerland, Zug
